Storage Settings offers a few tools. From this setting pane you can set full resolution photos to be stored on iCloud (assuming you have the space) while keeping a smaller low res version on the computer. This can be quite a memory saver if you have lots of photos. Optimize Storage will automatically delete movies and TV shows after you’ve watched them. You can download them again any time (assuming Apple keeps the rights to them, I keep all my movies and shows on an external drive). After this you have a list of applications which an information icon off to the right. This will open a dialog showing the files associated with that app. You can then choose to delete some or all. So this is a somewhat more convenient way of finding and deleting files than using Finder.
How you arrange your data is up to you and there are lots of methods. My wife had a boss who used the “dump it all into one huge pile” method. After 5 years she couldn’t find anything and they paid me some serious money to tediously go thru every file and try to bring order to chaos. My wife uses a project based method where all files, web links, word processing documents, photos etc associated with that project go into that folder. I have a coworker who keeps all files in folders associated with the application so, for example, all Excel files are in one folder regardless of project and her filename and date indicate the association. It works but is sometimes tedious. Anyway, the Storage Settings pane is an attempt to help you cut through some of the chaos and find files which you can then move them elsewhere or delete them.